'RTD is a fast-growing, key category' Nestlé boosts RTD Milo and Nescafé with Malaysia factory

By Rachel Arthur

- Last updated on GMT

Launched this year: Milo Nutri G
Launched this year: Milo Nutri G
Traditional versions of products like Nescafé and Milo still account for the lion’s share of the business: but ready-to-drink (RTD) varieties are a fast-growing category, especially in Malaysia, says Nestlé as it dedicates a factory in the country to these drinks. 

Nestlé unveiled its RM 288m / $67m Sri Muda factory in Malaysia this week, with the plant dedicated to producing RTD versions of Milo, Nescafé, and Nestle Omega Plus. The Sri Muda factory will boost RTD capacity by 60%.

The factory will product drinks for both domestic and export markets, producing Halal-certified products for Southeast Asia and further afield.

On the go

Nestlé has been selling RTD products in Malaysia for more than 20 years. But Alois Hofbauer, managing director, Nestle Malaysia Berhad, says now is the time to capitalise on growth opportunities for the fast growing category, both within domestic markets and exports.

“In Malaysia, we see an evolving lifestyle among consumers, which of course impacts how they consume food and beverages.

“People are now spending more time on the go, and less time at home. We need to evolve to cater to this consumer demand for greater convenience.

“More and more people have less time dedicated to prepare meals, such as breakfast, for example. We see this change in lifestyle also in the growth of convenience store channels, such as 7-11 and petrol marts.

“To grow as a business, we need to evolve with our consumers.”

The Sri Muda factory is 40,469 sq m in size, with a total capacity of 120,000MT per year. This equates to around 590m bottles of Milo Nutri G.

“Powders still hold the lion’s share of our business but RTD is a fast-growing key category, especially in Malaysia,” ​said Hofbauer.

The factory is Nestlé’s eight in Malaysia, and forms part of the Nestlé Shah Alam Factory Complex, one of the largest factory sites in the country with over 2,000 factory staff.

SM Aerial
Sri Muda factory

Heart health

The Sri Muda Factory produces RTD products in PET bottles and Tetra Brik packaging, such as Milo Nutri G (Milo with whole grains in a PET bottled, launched this year to provide ‘breakfast-on-the-go’), Nescafé, and Nestlé Omega Plus (a high calcium milk with plant sterols for lowering cholesterol).

Alois Hofbauer

Nestle Omega Plus contains Acticol plant sterols, provides 100% of daily calcium needs and a balance of omega 3 and 6: and this targets an increase in heart-related diseases in Malaysia, said Hofbauer.

“Malaysians are becoming more conscious about taking care of their health and are increasingly on the lookout for the right products that can cater to their needs,” ​he said.

“Heart-related diseases are on a rise in Malaysia and more Malaysians are having greater risk of cardiovascular diseases mainly due to poor eating habit and unhealthy lifestyle. People are looking for better food and beverage choices to manage their cholesterol, and to complement a more active lifestyle.”

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